Understanding Leave Encashment Under ESIC: Is It Possible After Surgery and Extended Absence?

I would like to understand the leave encashment process under ESIC. How does an employee go about availing the benefit of leave encashment under ESIC? The employee has undergone surgery at an ESIC hospital and was absent from duty for more than 30 days. Is he eligible to avail of the leave encashment benefit under ESIC?

Respected all,

Understanding ESIC Leave and Salary Payment Process

Any Insured Person (IP) on ESIC leave will have their salary paid by ESIC for the period during which they did not attend work due to illness or surgery. This is the process based on my experience.

Steps to Avail ESIC Leave Benefits

After joining the hospital, the concerned doctor will issue a leave certificate, typically on a weekly basis. The IP must submit all leave certificate copies to the employer for record purposes.

Final Steps and Salary Calculation

In the end, the doctor will provide Form-10, which is a fitness certificate stating the duration of leave and the rejoining dates. This form needs to be signed and stamped by the employer. Subsequently, the certificate must be submitted to the ESIC Branch office for the calculation of the salary amount, which will then be dispatched to the IP. Usually, this amount will be lesser than the take-home salary of any IP as it is calculated based on the employer's shown basic salary, and ESIC pays 70 to 90 percent of that salary. The IP is required to rejoin their services on the specified date.

Is ESIC applicable on annual leave encashment?

This question pertains to whether ESIC (Employees' State Insurance Corporation) applies to annual leave encashment. ESIC is a social security and health insurance scheme for Indian workers.

In general, ESIC contributions are not typically applicable to annual leave encashment as it is considered a payment made in lieu of leave entitlement. However, specific regulations may vary based on company policies and applicable laws. It is advisable to consult with HR or legal experts to determine the exact implications of ESIC on annual leave encashment in a particular context.

No, ESI contribution is not payable on leave encashment amount.

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This correction addresses the spelling of "Encashment" and ensures proper paragraph formatting with a single line break between paragraphs.